Yo! Sushi puts plans for Middle East on hold

Yo! Sushi, the Japanese-style chain, has been forced to postpone its expansion plans for the Middle East.

The London-based restaurant group signed a franchise agreement with Kuwait Hotels Company in June to allow the Kuwaiti company to open three Yo! Sushis in Kuwait, but this has now been delayed.

Managing director Robin Rowland said: "Middle Eastern companies are in stalemate and are putting off any decisions until the smoke clears."

Under the agreement, Kuwait Hotels was to develop the first restaurant by the end of 2002.

Rowland said the freeze on Middle Eastern developments had had no effect on Yo! Sushi's main business, which had been "relatively unscathed" by recent events. In the two weeks following 11 September, turnover was down 10% and was now down by 5%.

The 12th Yo! Sushi restaurant opens on the concourse of London's Paddington station on 24 October. The stand-alone site took a week to build from scratch and cost £180,000. A further five restaurants are planned over the next 12 months.